NEW YORK, United States —
United Airlines announced
Tuesday a huge new plane order with Boeing and Airbus in the biggest bet thus
far by a major carrier on a travel industry recovery from COVID-19.
اضافة اعلان
The US carrier plans to acquire 270 new planes consisting of
200 Boeing aircraft and 70 Airbus jets. The order would be valued at $35.4
billion based on the listed price of the jets, although airlines often end up
paying much less than the list price.
United executives described the order — the biggest in the
airline's history — as a landmark moment symbolizing the radically improved
outlook for travel due to coronavirus vaccines.
Still, United and other major airlines are expected to
report another quarterly loss for the April-June period when they release their
earnings reports in July, reflecting the continued drag of a travel crisis that
has devastated travel revenue for more than a year.
United's business travel volumes are still down 60 percent,
with international travel off even more, said United Chief Executive Scott
Kirby.
"We're not back to 100 percent," Kirby said on a
conference call with reporters in which he outlined how the company leaders had
strategized on its needs early in the pandemic.
"Because we accurately mapped out the trajectory of the
crisis in March and April of last year, it's really allowed us to be prepared
and make the right short- and long-term decisions," he said.
Company officials were not asked about the so-called Delta
virus variant — which is spreading rapidly in many parts of the world — during
the hour-long conference call, but the announcement illustrates broad
confidence in the industry's prospects even as the pandemic evolves.
Narrow-body focus
The biggest component of the order will be 150 of Boeing's
new 737 MAX 10, which is still undergoing tests in a process closely monitored
by US regulators. The announcement is a victory for Boeing's jet, which was
grounded for 20 months following two deadly crashes.
The other two components are 50 Boeing 737 MAX 8 and 70
Airbus A321neo.
All three models are narrow-body jets, making them
well-suited for domestic and shorter-distance trips that have been among the
first to see passenger numbers recover from the Covid-19 pandemic.
"We are truly humbled by United Airlines' confidence in
the people of Boeing and the airplanes we design and build every day,"
said Stan Deal, president and CEO of
Boeing Commercial Airplanes.
"Such a significant order from a great airline like
United underscores that the A321neo offers unmatched capabilities, operating
economics, and passenger friendliness," said Christian Scherer, Airbus
Chief Commercial Officer.
Both the Airbus model and the next-generation 737 MAX are
bigger than earlier versions of the same aircraft, a feature especially
beneficial for increasing capacity in New York, San Francisco and other markets
where adding more flights is difficult or impossible, United officials said.
United officials made clear during the conference call that
they have seen very recent signs of an acceleration in business travel
bookings, with firms eager to resume client visits as they see their
competitors returning to the skies.
Executives also said they were bullish about international
travel, speaking of the summer of 2022 as being a "record breaker" as
US consumers make up for lost opportunities during the pandemic to visit Europe
and Asia.
The new planes will include enhanced in-flight entertainment
options aiming to delight consumers with access to games and thousands of shows
and movies. In another step to please consumers, the company plans to upgrade
its existing fleet of narrow-body planes to add more compartment space for
luggage.
Richard Aboulafia, an aviation expert at
Teal Group, said
purchases of the A321 and the 737 MAX — both single-aisle planes — make sense
for the airline in the current market.
"The domestic markets are coming back pretty fast and
fuel prices are coming back fast too," Aboulafia said.
Airlines must make long-term bets to remain competitive,
even if current market conditions still present significant problems, Aboulafia
said, adding that current low interest rates also encourage making purchases
now.
Scott Hamilton of Leeham News, an aviation website, said he
was surprised at the size of the order. Boeing likely provided United an
appealing discount because the company "has to rebuild its order
book" after the MAX crisis, he said.
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